Infrastructure & PPPs in Malaysia - Q1 2026 Update

YOG INFRA
1 day ago
19 min read

MALAYSIA is accelerating its energy transition and infrastructure development, driven by rising power demand from data centres requiring up to 7 GW of electricity. Renewable energy expansion is gaining pace with large-scale solar projects such as the 200 MW floating solar and growing battery storage deployment including 400 MWh - 800 MWh BESS systems. The country is also advancing transport electrification with plans to deploy 1,600 electric buses and major rail investments like the USD 2.15 Bn RTS Link. As with other ASEAN countries, we see an increased focus on development of data centres and enhanced digital connectivity initiatives.

Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight for the country.

JANUARY 2026

MASDAR SECURES PPA FOR 200 MW FLOATING SOLAR PROJECT AT CHEREH DAM

Abu Dhabi-based Masdar has signed a power purchase agreement (PPA) for a 200 MW floating solar photovoltaic (PV) project at Chereh Dam in Pahang State, marking its first renewable energy investment in Malaysia. Once completed, the project is expected to be the largest floating solar facility in Southeast Asia and will supply clean electricity to more than 100,000 homes.

The project will be developed by a Masdar-led consortium that includes local partners Citaglobal and Tiza Global. Power generated from the facility will be sold under a long-term PPA to Tenaga Nasional Berhad, Malaysia’s national electricity utility. Awarded under the Large-Scale Solar Cycle 5+ programme, the project secured the lowest tariff in the floating solar category, highlighting its cost competitiveness.

Designed with a DC capacity exceeding 300 MWp, the floating solar plant will cover around 950 acres of reservoir surface. Floating PV technology was selected to optimise land use while benefiting from natural panel cooling and reduced water evaporation, improving overall system efficiency. The total investment is estimated at around USD 208 Mn, structured through non-recourse project financing supported by international lenders.

BLUELEAF ENERGY-UNIVERSAL PEAK CONSORTIUM WINS 100 MW/400 MWH BESS PROJECT IN MALAYSIA

Blueleaf Energy, in partnership with Universal Peak Sdn. Bhd., has announced that their consortium has been selected by the Energy Commission of Malaysia (Suruhanjaya Tenaga) to build, own, and operate a 100 MW/400 MWh utility-scale Battery Energy Storage System (BESS).

The project is part of the inaugural Malaysia Battery Energy Storage System (MyBeST) program, a competitive bidding initiative representing the largest deployment of grid-connected BESS in Peninsular Malaysia to date. With a targeted commissioning date in 2027, the project will play a pivotal role in strengthening Malaysia's national grid and accelerating the country's transition to a carbon-neutral renewable energy future.

The MyBEST program is a cornerstone of the National Energy Transition Roadmap (NETR), which targets 70% renewable energy capacity by 2050. By providing essential grid services such as frequency regulation, peak and energy shifting, BESS technology reduces reliance on fossil-fuel peaking plants and expands the use of solar power beyond sunshine hours. BESS therefore optimise power system costs and enhances the overall resilience of the energy infrastructure.

TM NXERA SECURES 280 MW POWER FOR AI-READY DATA CENTRE IN JOHOR

TM Nxera has signed a multi-year electricity supply agreement with Tenaga Nasional Bhd (TNB) to secure 280MW of power for its upcoming artificial intelligence (AI)-ready, hyperconnected data centre campus in Iskandar Puteri, Johor.

TM Nxera is the joint venture between Telekom Malaysia Bhd and Singtel's regional data centre arm, Nxera. The state-of-the-art Tier 3 cloud-enabled facility, scheduled to begin its first phase of operations in 2026, is designed to support large-scale AI workloads and hyperscalers, with scalable capacity exceeding 200MW.

The campus will feature advanced liquid cooling technologies, LEED-certified sustainable design and seamless connectivity via TM and Singtel's subsea cable networks, enabling low-latency global access. The facility is a flagship investment within the Johor-Singapore Special Economic Zone, positioning Malaysia as a leading regional hub for cloud and AI innovation.

MALAYSIA’S RENEWABLE ENERGY SECTOR GEARS UP AS LSS6 SOLAR TENDERS AND CRESS DRIVE GROWTH

Malaysia’s renewable energy sector is expected to see a flurry of activity in the Q1 of 2026, driven by surging power demand from the country’s expanding data centre industry.

The government is likely to launch bids for the sixth round of the Large-Scale Solar (LSS6) programme, which could potentially create RM 6 Bn (USD 1.47 Bn) in construction jobs and add up to 2GW of solar capacity. Kenanga recommended investors remain “overweight” on the sector, citing promising returns for developers. LSS6 is expected to include battery requirements, with internal rates of return projected at 8%-10% for developers, highlighting the sector’s growing integration of energy storage solutions.

Malaysia’s national utility, Tenaga Nasional Bhd, has already signed agreements for 49 data centre projects, which could collectively require up to 7GW of electricity. The Corporate Renewable Energy Supply Scheme (CRESS), launched in 2024, enables high-demand operators to purchase green power directly from renewable energy developers. Kenanga noted that committed CRESS capacity had reached 1.3GW as of Q2 2025.

CENERGI SEA AND MALAYSIA AIRPORTS ADVANCE CLEAN ENERGY TRANSITION WITH SOLAR AND BATTERY ENERGY STORAGE PROJECT AT KLIA

Cenergi SEA Berhad (“Cenergi”), a subsidiary of UEM Lestra Berhad, and KLIA Aeropolis Sdn. Bhd., a wholly owned subsidiary of Malaysia Airports Holdings Berhad (Malaysia Airports) are co-developing a 36MWp large scale solar photovoltaic (PV) power plant integrated with a 45MWh Battery Energy Storage System (BESS) under the Solar for Self-Consumption (SELCO) programme.

The project, undertaken by Cenergi Aeropolis Renewable Energy Sdn. Bhd. (CARE), a joint-venture between Cenergi and KLIA Aeropolis, will be located within the KLIA Aeropolis precinct and is designed to supply clean, renewable energy directly for airport operations at KL International Airport (KLIA). The integration of energy storage positions the project among the early large-scale self-consumption solar developments in Malaysia to incorporate BESS, enhancing energy reliability and operational efficiency.

This initiative marks a key milestone in Malaysia Airports’ Net Zero Decarbonisation Roadmap, supporting the target of achieving a 20% renewable energy mix by 2030 and Net Zero Carbon by 2050. The integration of on-site solar generation with energy storage delivers clean energy to KLIA while enhancing energy resilience and advancing our long-term sustainability commitments.

Upon completion, the CARE solar and BESS facility is expected to generate approximately 46 GWh of clean electricity annually over a project lifespan of 25 years. The project is projected to reduce carbon emissions by approximately 35,000 tonnes of CO₂ per year, equivalent to removing about 8,000 vehicles from the road or powering approximately 13,400 homes annually.

RAPID BUS TO BUY 1,600 ELECTRIC BUSES IN NATIONWIDE FLEET UPGRADE

Rapid Bus plans to procure 1,600 electric buses (EVs) in phases between 2026 and 2031 as part of its medium- and long-term strategy to replace most of its existing bus fleet nationwide.

The 250 EV buses will be acquired in the first phase, with deliveries scheduled to take place gradually from Q2 2026. The first phase involves 175 EV buses for Rapid KL and 75 EV buses for Rapid Penang, which are expected to begin operations in Penang from Q2 2026. This move is in line with the government’s efforts to modernise public transport, reduce carbon emissions, and support states’ aspirations towards greener mobility.

All the buses measure 8.9 metres in length and will be deployed for services around Penang. The EV buses are generally more expensive than diesel buses, with prices estimated at between RM 1.2 Mn and RM 1.5 Mn (USD 296,400 - 370,500) per unit, although full procurement details have yet to be announced as the tender process is still ongoing. The government wants to ensure the best value is obtained, which is why the total allocation has not been announced while the procurement process is still ongoing.

OPERATIONS TO COMMENCE ON THE FIRST ART SYSTEM IN SARAWAK BY 2026

Sarawak will begin operations of its first Autonomous Rapid Transit (ART) service on the Samarahan–Kuching corridor by the end of 2026, with plans to extend the system to the proposed new Kuching International Airport in Tanjung Embang, Asajaya. The airport link is expected to be developed within the next five years.

The hydrogen-powered ART system forms the backbone of the Kuching Urban Transportation System (KUTS), being implemented by Sarawak Metro Sdn Bhd. Phase I of KUTS spans 69.9 km across three lines—Blue, Red, and Green—with 28 stations. The Blue Line (27.6 km) connects Samarahan to central Kuching, the Red Line (12.3 km) links Kuching Sentral to Pending via the airport area, and the Green Line (30 km) runs from Pending to Santubong.

The new airport at Tanjung Embang is planned to handle up to 15 million passengers annually and, together with a proposed deep-sea port, is expected to position Asajaya as a major transport hub. Authorities the ART network will improve connectivity, reduce congestion, and support long-term urban and economic development across Greater Kuching.

ECOCERES COMMISSIONS MALAYSIA’S FIRST SUSTAINABLE AVIATION FUEL PLANT IN JOHOR

Hong Kong-based renewable fuels producer EcoCeres Inc. has inaugurated Malaysia’s first sustainable aviation fuel (SAF) production facility at Pasir Gudang, Johor, marking the commissioning of the country’s first commercial SAF plant. The facility was commissioned and began operations in Q4 2025.

The plant produces sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO) and renewable naphtha, with a combined maximum capacity of 420,000 tonnes per year. It converts waste and residue feedstocks into low-carbon fuels to serve the aviation, maritime, road transport, mining and chemical sectors.

The Johor facility supports Malaysia’s National Energy Transition Roadmap and National Agri-commodity Policy (DAKN) 2030, contributing to the country’s net-zero by 2050 target. Along with EcoCeres’ existing renewable fuels plant in Zhangjiagang, China, the company’s total global renewable fuels capacity now stands at around 770,000 tonnes per year, positioning EcoCeres as a major SAF producer in Asia.

MALAYSIA AIRPORTS COMPLETES USD 2.99 MN INFRASTRUCTURE UPGRADE AT KOTA KINABALU INTERNATIONAL AIRPORT

Malaysia Airports has spent MYR 11.8 Mn (USD 2.99 Mn) to upgrade ageing infrastructure at Kota Kinabalu International Airport (KKIA), focusing on the refurbishment of passenger amenities to support uninterrupted airport operations.

The works covered the refurbishment of 26 toilet facilities comprising 196 cubicles, including accessible toilets, baby care rooms and janitor storerooms. Scope included full replacement of plumbing and sanitary systems, waterproofing and drainage improvements, mechanical and electrical upgrades, and installation of fittings designed for high passenger volumes.

KKIA’s terminal has been in operation for more than two decades and handles millions of passengers annually, placing sustained pressure on its facilities. Phase One of the refurbishment was completed in Q1 2025, while Phase Two is scheduled for completion in Q2 2026 as part of Malaysia Airports’ ongoing asset maintenance and renewal programme.

PETRONAS OUTLINES UPSTREAM INVESTMENT FRAMEWORK IN MALAYSIA

Malaysia’s national oil company, PETRONAS has outlined its upstream investment framework through 2028, targeting the maintenance of production capacity at around 2 million barrels of oil equivalent per day (boed) across Malaysia’s mature and deepwater assets. The strategy prioritises asset optimisation, enhanced oil recovery (EOR), and selective deepwater developments rather than large-scale frontier exploration.

The investment programme focuses on brownfield upgrades at key producing fields, including Belud, Sepat and Kurma Manis, alongside deepwater developments in water depths of 200–1,500 metres. Planned works include subsea infrastructure installation, pipeline development exceeding 200 km, deployment of 15–25 subsea trees, and incremental processing capacity of up to 200,000 boed. Project execution is scheduled between 2026 and 2028, covering engineering, subsea installation, and production start-up phases.

PETRONAS is also advancing decarbonisation initiatives under the BIGST cluster (Bujang, Inas, Guling, Sepat and Tujoh), targeting a 40–50 % reduction in operational emissions by 2028 through platform electrification, methane management systems, renewable energy integration, and carbon capture pilot projects. The upstream investment plan supports Malaysia’s energy security objectives while sustaining domestic supply, supporting LNG feedstock requirements, and strengthening the local oilfield services sector.

VCI GLOBAL PARTNERS WITH TIANNENG TO DEVELOP 250MW SOLAR AND 800MWH BATTERY STORAGE IN MALAYSIA

VCI Global Limited has announced a strategic collaboration with Zhejiang Tianneng Energy Storage Technology Development Co., Ltd (Tianneng), a subsidiary of Tianneng Co., Ltd., to accelerate renewable energy infrastructure in Malaysia. The partnership will be executed through VCI Global’s controlled platform, VCI Energy Sdn Bhd, and aims to deploy up to 250MW of solar generation integrated with 800MWh of battery energy storage systems (BESS).

The initiative will begin with a utility-scale solar-plus-storage project in Malacca, designed to provide dispatchable, round-the-clock clean power for AI data centers, hyperscalers, and advanced digital infrastructure operators, sectors experiencing rapid growth in Malaysia and Southeast Asia.

Tianneng, a leading Chinese manufacturer of high-performance batteries and energy storage systems, has been appointed as VCI Energy’s primary Engineering, Procurement, Construction, and Financing Facilitation (EPC+F) partner. The collaboration leverages Tianneng’s advanced technologies, including liquid-cooled BESS solutions and intelligent energy management platforms, engineered for high safety, long lifecycle performance, and grid stability.

Under the EPC+F structure, Tianneng will facilitate project-level financing, enabling VCI Global to scale the infrastructure without diluting shareholder equity. Key financial highlights include:

Indicative Project Value: USD 200–300 Mn.
Potential Long-Term Revenue: USD 360–480 Mn over 20 years.
Annual Revenue Projection: USD18–24 Mn based on 350–450GWh energy output.

UNIQUE FIRE TO DIVERSIFY INTO RENEWABLE ENERGY VIA 95 MW SOLAR JV WITH HSS ENGINEERS UNIT

UNIQUE Fire Holdings Bhd is proposing to diversify into the renewable energy sector through a joint venture to develop a 95 MW large-scale solar photovoltaic plant in Hilir Perak, with an estimated development cost of RM 300 Mn to RM 350 Mn (USD 76.01 Mn to 88.67 Mn). The group, via its wholly owned subsidiary Unique Green Energy Sdn Bhd, has formed a joint venture with HEB Energy Sdn Bhd, a wholly owned unit of Main Market-listed HSS Engineers Bhd.

The project vehicle, Unique HEB Energy Sdn Bhd, is 60%-owned by Unique Green and 40%-owned by HEB Energy. The joint venture has been shortlisted under the government’s LSS5 bidding exercise and has signed a 21-year power purchase agreement with Tenaga Nasional Bhd. Construction is expected to begin in the first half of 2026, with commissioning targeted for the Q4 of 2027.

To support the project, Unique Fire is proposing to provide financial assistance of up to RM 309.95 Mn (USD 78.53 Mn), comprising shareholders’ advances and corporate guarantees for bank borrowings. The proposals, including the diversification into renewable energy, will be subject to shareholders’ approval at an EGM. Upon completion, the solar project is expected to provide long-term recurring income for the group, while its core fire protection business will remain unchanged

PEKAT GROUP SECURES 21-YEAR PPA FOR 25 MW SOLAR AND 40 MWH BATTERY PROJECT IN KUANTAN

Pekat Group Bhd has made a major stride in Malaysia’s renewable energy sector through its wholly-owned subsidiary, Pentas RE Sdn Bhd, by signing a 21-year Power Purchase Agreement (PPA) for a significant solar and battery storage project in Kuantan, Pahang. This development reflects the company’s growing role in supporting Malaysia’s shift toward sustainable energy solutions.

The project will see the creation of a 25MWac solar photovoltaic (PV) facility integrated with a 40MWh battery energy storage system (BESS). The combination of solar PV and battery storage allows for the efficient management of energy supply, ensuring electricity is available even when sunlight is not, making the power supply more stable and reliable for the off-taker.

Financially, the contract represents a significant achievement for Pekat, with projected revenue over two decades estimated at approximately RM 239 Mn (USD 60.55 Mn). This long-term revenue stream provides the group with strong financial visibility and stability. The project aligns with a growing trend in Malaysia, where industries are increasingly turning to integrated renewable energy solutions to meet sustainability targets and manage rising energy costs.

FEBRUARY 2026

PETRONAS SIGNS 20-YEAR LNG SUPPLY AGREEMENT WITH QATARENERGY

Petroliam Nasional Bhd’s subsidiary Petronas LNG Ltd (PLL) has signed a 20-year Liquefied Natural Gas (LNG) sale and purchase agreement (SPA) with QatarEnergy, marking the first long-term LNG supply deal between the two energy firms.

Under the SPA, PLL will offtake up to 2 million tonnes per annum (MTPA) of LNG from QatarEnergy over the duration of the contract. The transaction framework strengthens Malaysia’s energy supply ties with Qatar and is aligned with Petronas’ broader LNG portfolio strategy, which focuses on securing stable, long-term sources of LNG to support domestic and international energy demand.

The agreement is expected to enhance energy cooperation between the two countries while providing Petronas LNG with predictable supply and pricing structures over the next two decades. The deal also reflects growing demand for LNG in the Asia-Pacific region as countries transition toward cleaner fuel sources and seek reliable baseload energy commodities.

GDB HOLDINGS SECURES TWO SARAWAK ROAD INFRASTRUCTURE CONTRACTS WORTH USD 25.6 MN

GDB Holdings Bhd has secured two infrastructure contracts in Sarawak with a combined value of MYR121.4 Mn (USD 25.6 Mn), marking the group’s first entry into the East Malaysian construction market. The contracts were awarded by Bina Muhibbah Permajaya Construction Sdn Bhd.

The first contract, valued at MYR 54.4 Mn (USD 11.5 Mn), covers road development works across the Simunjan and Samarahan districts. The project commenced on Q1, 2026, has a construction period of 32 months, and is scheduled for completion by Q3, 2028.

Under the second contract, worth MYR 67 Mn (USD 14.1 Mn), GDB will construct a new single-carriageway road together with associated earthworks, drainage, and ground improvement works across the Kuching and Samarahan divisions. This project began on Q1, 2026, carries a 17.5-month duration, and is expected to be completed by Q3, 2027. GDB the two contracts increase its outstanding order book to MYR 669 Mn (USD 141.2 Mn), providing earnings visibility through to late 2028.

EVE ENERGY TO DEVELOP 10 MW SOLAR+36 MWH STORAGE PROJECT AT KLIA

EVE Energy, together with project partners, has signed a contract to develop a large-scale solar-plus-storage system at Kuala Lumpur International Airport (KLIA), marking the company’s first entry into Malaysia’s critical transport infrastructure energy sector.

The project comprises a 10 MW ground-mounted solar photovoltaic plant integrated with a 36 MWh battery energy storage system (BESS). It represents EVE Energy’s first AC/DC integrated energy storage deployment in Malaysia and will utilise the company’s 628 Ah energy storage batteries. The system also includes a 5 MWh highly integrated storage solution to support grid connection, peak shaving and frequency regulation.

Once operational in 2027, the solar-plus-storage system will supply stable renewable electricity to KLIA’s main terminal, operating alongside an existing 36 MWp solar farm at the airport. The installation is designed to enhance energy reliability for airport operations while reducing dependence on grid-supplied power.

The project aligns with Malaysia National Energy Transition Roadmap and the country’s carbon reduction targets. It is expected to reduce approximately 42,006 tonnes of carbon dioxide emissions annually, supporting KLIA’s objective to increase renewable energy usage by 2030 and progress toward net-zero emissions.

MAXIS APPOINTED TELECOMS INFRASTRUCTURE PARTNER FOR EAST COAST RAIL LINK

Malaysia Rail Link has appointed Maxis as the preferred infrastructure and telecommunications partner for the 665 km East Coast Rail Link (ECRL). Maxis will co-develop the telecoms infrastructure with U Mobile under a shared network model.

Under the agreement, Maxis will deliver end-to-end connectivity along the full ECRL alignment, including mobile coverage inside tunnels and stations, fibre capacity management, onboard Wi-Fi, broadband services for station retailers, and enterprise push-to-talk solutions for railway personnel. The telecoms network will operate as shared infrastructure, enabling customers of all mobile network operators to access services along the route.

The ECRL spans 665 km across Kelantan, Terengganu, Pahang and Selangor, linking Kota Baru to the Gombak Integrated Transport Terminal, with a future extension to Port Klang. The project is scheduled to begin operations in Q1 2027, with the Port Klang extension expected in 2028. The telecoms rollout is positioned to support rail operations, passenger connectivity, and regional digital development in the East Coast Economic Region

JOHOR BAHRU–SINGAPORE RTS LINK SUCCESS DEPENDS ON LAST-MILE CONNECTIVITY

Malaysia’s Parliament has tabled the RTS Link Bill 2026 to provide the legal framework for the Johor Bahru–Singapore Rapid Transit System (RTS) Link, including provisions for joint Customs, Immigration and Quarantine (CIQ) operations at Bukit Chagar in Johor Bahru and Woodlands North in Singapore. As the 4 km cross-border rail project approaches completion, authorities are assessing last-mile transport capacity at Bukit Chagar station to accommodate projected peak-hour passenger volumes.

The RTS Link comprises a two-station system connecting Bukit Chagar and Woodlands North, designed to handle high passenger throughput during peak commuting periods. Estimates indicate that peak volumes could reach up to 30,000 passengers per hour when combined with existing bus, taxi and e-hailing flows. Authorities are reviewing pedestrian circulation space, curbside capacity, transfer facilities and feeder service integration to ensure smooth dispersal from the station to surrounding areas. It is estimated to cost RM 10 Bn (USD 2.15 Bn).

The RTS Link is a bilateral infrastructure project between Malaysia and Singapore aimed at strengthening cross-border mobility and reducing congestion at existing checkpoints. The project forms part of broader transport integration efforts in Johor Bahru, with supporting road, feeder bus and urban redevelopment works planned around the Bukit Chagar transport hub. Operational readiness measures, including phased commissioning and crowd management systems, are expected to be finalised ahead of full-service commencement.

MALAYSIA AWARDS 6.3 GW UNDER NEWGEN25 THERMAL POWER TENDER

Malaysia’s Energy Commission of Malaysia (Suruhanjaya Tenaga) has announced the award of ten projects with a combined capacity of approximately 6.3 GW under the NewGen25 competitive bidding programme. The tender marks the country’s first competitive procurement for thermal power generation since 2012.

The NewGen25 programme, launched in May 2025, invited bids for projects scheduled for commissioning between 2026 and 2028. Two categories were offered: short-term available capacity from existing, expiring or expired plants, and long-term capacity for baseload or peaking requirements. Nine projects totalling 4.8 GW were awarded under the short-term category, while a new 1.4 GW combined-cycle gas turbine (CCGT) plant was selected under the long-term category. It estimates the new plant could cost between USD 1.1 Bn and USD 1.4 Bn, based on typical development costs.

IFC INVESTS USD 40 MN IN ZETRIX AI TO EXPAND DIGITAL PUBLIC INFRASTRUCTURE SERVICES

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has committed a USD 40 Mn equity investment in Zetrix AI Bhd to support the expansion of Digital Public Infrastructure (DPI) services in Malaysia. The funding will support the development and rollout of blockchain-based DPI applications and artificial intelligence-enabled products aimed at improving digital inclusion, service delivery and economic efficiency in Malaysia and across ASEAN.

In Malaysia, Zetrix AI’s solutions will integrate with MyDigital ID, the national digital identity system, and the Malaysia Blockchain Infrastructure (MBI), the country’s national blockchain network. The company’s applications focus on services such as digital identity verification, digitised customs clearance, international trade facilitation and tokenisation of real-world assets. The investment will also support the company’s expansion into other emerging markets in ASEAN and beyond.

Zetrix AI, formerly known as MY E.G. Services Bhd, operates a Layer-1 blockchain platform and deploys blockchain and AI technologies for public and private sector applications. The investment aligns with Malaysia’s Thirteenth Malaysia Plan (2026–2030), which prioritises digital transformation and infrastructure development to strengthen economic competitiveness and public service delivery.

MARCH 2026

PENANG INTERNATIONAL LOGISTICS AEROPARK PROJECT COMMENCES IN Q1 2026

The Penang International Logistics Aeropark (PILA) project at Penang International Airport has commenced in the Q1 of 2026 in Malaysia. The development aims to upgrade and expand the airport’s cargo handling infrastructure to strengthen Malaysia’s air freight capabilities.

Phase 1 of the project will increase the airport’s cargo handling capacity from 0.16 million tonnes to 0.5 million tonnes per year. The phase includes the construction of a new cargo terminal, a taxiway and two aircraft parking aprons to support increased air cargo operations and improve logistics efficiency.

The project forms part of broader efforts under the National Transport Policy 2019–2030 to position Malaysia as a regional logistics and distribution hub. In parallel, the government is working with Malaysia Airports Holdings Bhd and other stakeholders to modernise the air cargo ecosystem through policy reforms and digitalisation initiatives. Authorities are also advancing port and rail connectivity projects, including the development of new port terminals and railway spur lines linking major ports and industrial hubs.

CTDC, BGMC AND RENIKOLA FORM GREEN ENERGY ALLIANCE FOR AI DATA CENTRE IN MALAYSIA

Computility Technology (Malaysia) Sdn Bhd (CTDC), BGMC Energy Holdings Sdn Bhd (BGMC), and renewable energy producer reNIKOLA have signed a strategic term sheet to develop a long-term renewable energy supply programme in Malaysia. The agreement will support the decarbonisation of large-scale digital infrastructure by supplying renewable electricity to power an upcoming artificial intelligence (AI) data centre in Gelang Patah.

Under the partnership, CTDC, wholly owned by ZDATA, will use renewable power generated from BGMC’s solar farm assets to operate ZDATA’s first AI data centre in Malaysia. The programme is expected to begin in 2028 and will supply approximately 630,000 MWh of renewable electricity annually, supporting Malaysia’s national energy transition and sustainability targets.

In parallel with the renewable energy initiative, CTDC announced that it has eliminated reliance on municipal water for its cooling systems. The company has implemented a self-sustaining cooling loop using proprietary recycling technology, reducing pressure on local water resources in Johor while improving operational resilience and independence from external infrastructure.

The companies stated that the green energy alliance forms part of a broader strategy to integrate environmental, social and governance (ESG) principles into digital and industrial infrastructure development. With the agreement signed, the partners will now move into the implementation phase to ensure the renewable energy supply programme is ready ahead of the data centre’s planned operations in 2028.

TELEKOM MALAYSIA AND TENAGA TO DEVELOP GREEN DIGITAL INFRASTRUCTURE

Telekom Malaysia (TM) and Tenaga Nasional Berhad (TNB) have signed a memorandum of understanding (MoU) to jointly develop green energy solutions aimed at building a more sustainable and interconnected energy and digital infrastructure ecosystem in Malaysia. The partnership will combine TNB’s renewable energy capabilities with TM’s digital infrastructure, connectivity and artificial intelligence expertise.

Under the agreement, the two companies will collaborate on initiatives such as rooftop solar installations, bundled solar solutions and the expansion of electric vehicle (EV) charging networks under TNB’s Electron platform. As an initial step, the partners are assessing the installation of solar systems at up to 150 TM premises, with plans to extend solar adoption to residential customers through TM’s Unifi Home services.

TNB’s solar subsidiary GSPARX has already secured over 530 MW of rooftop solar capacity across more than 3,000 sites, while the utility has deployed around 256 EV charging stations nationwide. The collaboration will further expand these efforts while integrating digital tools and AI-driven analytics to improve energy management, optimise consumption and enhance service reliability.

The partnership also includes exploring more efficient sourcing of ICT services to strengthen supply chains, reduce costs and improve long-term digital readiness. Both companies stated that the initiative will support Malaysia’s transition toward a greener, more resilient infrastructure system while improving customer experience through better access to clean energy and smart technologies.

EDOTCO MALAYSIA AND HUAWEI TO ADVANCE TELECOM INFRASTRUCTURE

Edotco Malaysia has entered into a strategic partnership with Huawei to enhance telecommunications infrastructure management through advanced digital technologies and automation. The collaboration focuses on deploying next-generation network operations solutions to improve efficiency, reliability and service quality across Malaysia’s telecom infrastructure.

The partnership combines Edotco’s operational expertise with Huawei’s digital operations and maintenance (O&M) capabilities. Key features include the implementation of a unified O&M platform, AI-assisted scheduling, geolocation-based task allocation and enhanced field maintenance precision. These tools are expected to enable more data-driven decision-making and streamlined infrastructure management.

The initiative aims to deliver improved network reliability, faster fault detection and restoration, and reduced service disruptions. It also introduces predictive and preventive maintenance capabilities through intelligent inspection systems and full-scale asset digitalisation, helping optimise asset performance and uptime.

The collaboration aligns with Malaysia’s broader digital ambitions, including its AI Nation 2030 goals, which focus on strengthening digital infrastructure, governance frameworks and technological capabilities. By integrating advanced technologies into telecom operations, the partnership is expected to support the country’s transition toward a more resilient and future-ready digital ecosystem.

GAS MALAYSIA SECURES APPROVAL FOR 6 MTPA FSRU PROJECT IN KEDAH

Gas Malaysia has received a letter to proceed from the Energy Commission Malaysia for the development of a liquefied natural gas (LNG) regasification terminal in Yan, Kedah.

The project will be developed as an offshore floating storage and regasification unit (FSRU) located west of Pulau Bunting, with a planned capacity of up to 6 million tonnes per annum (Mtpa). The total investment is estimated at MYR 2 Bn to MYR 3 Bn (approximately USD 510 Mn to USD 765 Mn). The approval is subject to regulatory conditions that must be fulfilled within a specified timeline before full project development can proceed.

The new terminal is expected to strengthen Malaysia’s gas supply infrastructure amid rising domestic energy demand. Currently, the country operates two LNG import terminals—an offshore FSRU in Melaka (3.8 Mtpa, operational since 2013) and an onshore terminal in Pengerang (3.5 Mtpa, operational since 2017). Malaysia imported around 7.5 Mt of LNG in 2024 while continuing to remain a major global LNG exporter.

TNB LAUNCHES 100 KV FLOATING SOLAR PILOT PROJECT

Tenaga Nasional Bhd (TNB) has launched a 100-kW floating solar pilot project at Kenyir Lake, Southeast Asia’s largest man-made lake with ambitions to scale up to 2.2 GW of capacity.

The hybrid hydro floating solar initiative aims to demonstrate how up to 10% of the lake’s surface could be used for solar energy generation without ecological disruption. The pilot is part of a broader 2.5GW hybrid solar-hydro plan. TNB’s strategy combines daytime solar generation with hydroelectric energy storage to stabilise the grid and meet fluctuating demand. TNB Genco Sdn Bhd, in partnership with state investor Terengganu Incorporation leading the pilot.

List of key transactions - Malaysia Q1 2026

Source: YOG INFRA analysis

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